NRR (Net Retention Rate) is a new standard in PE, one previously normalized in SaaS over a decade ago.
Within private equity, financial engineering guided the acquisition, hold, value creation, and exit principles until about 2022. With the ZIRP times behind us, pure accounting wizardry is failing across most business models.
This puts the onus on traditional GTM analyses, or product flywheels, or user experience and product stickiness, customer support (and RevOps as a result), and other areas owned by different divisions inside of an organization.
And more often than not, private equity firms take over service companies. With rising customer acquisition costs and louder channels, the value of existing companies continues to rise.
Here’s how NRR applies to mid-market portfolios, PE rollups, and fund strategies today.
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NRR is Not SaaS-Specific – but Driving Enterprise Value Across PE Portfolios
Mario Peshev
